ADNOC Invests $6.2 Billion to Develop Umm Shaif Gas Cap for LNG Expansion

Abu Dhabi's National Oil Company will invest $6.2 billion to develop the Umm Shaif Gas Cap, a massive offshore oil and gas field, as part of its strategy to expand natural gas production and liquefied natural gas exports.

Disruptions in the Strait of Hormuz, usually an avenue for around 20% of the world's LNG trade, have underscored the importance of the project and highlighted the vulnerability of global energy supplies.

Umm Shaif, Abu Dhabi’s longest-operating offshore field, is being developed alongside TotalEnergies, Eni and China National Petroleum Corporation.

The field will unlock more than 600 million standard cubic feet of natural gas and associated gas liquids per day, according to ADNOC, equivalent to nearly 10% of the UAE’s current daily gas consumption. Production is expected to begin by 2030.

The investment comes as the UAE seeks to monetize its gas reserves, while strengthening domestic energy security and bolstering its position in global LNG markets. The country holds the world’s seventh-largest proven gas reserves, in addition to its over four million barrels per day of oil production.

The UAE left OPEC earlier this year and now has no output limits. Abu Dhabi is hoping to surpass 5 million barrels per day of production by next year.

“ADNOC is accelerating its integrated gas strategy to further harness the UAE's vast gas resources and expand our global LNG platform, as global demand for natural gas continues to rise,” ADNOC CEO Sultan Ahmed Al Jaber said in a statement.

Umm Shaif has played a central role in Abu Dhabi’s energy industry for more than six decades. The field was home to Abu Dhabi’s first offshore well and supplied crude oil for the emirate’s first oil exports in 1962.

The investment also signals Abu Dhabi's broader ambition to establish itself as a major global gas and LNG supplier. ADNOC is targeting 47 million metric tons of LNG capacity per annum by 2035 as it expands production, trading and export capabilities.

The strategy has gained urgency as the Middle East war continues to disrupt global energy markets and highlights the importance of reliable gas supplies, with the Strait of Hormuz remaining effectively closed, especially to major producers like Qatar.

The UAE's gas push is increasingly necessary as a third of its domestic demand is supplied by a deal with Doha via pipeline, set to expire in 2032.